Company was established in the year 1961 by setting up a plant in Lonavala, in collaboration with Steyr Diamler Puch, Austria. Company is one of the oldest bearing companies in India. During 1990 it expanded the capacity of its plant at Lonavala from 1.7 mn to 3 mn bearings. During 1997-98, the company has entered into a long-term licensing and technical assistance agreement for Ball and Tapered Roller Bearing with NSK Ltd, Japan to upgrade its manufacture process and improve quality of the product. Company plants have the ISO 9001 and QS 9000 certifications. Company has got Technology assistance from Japan and their experts visited the plant to guide the engineering staff and implementation of various technological improvements in the field of Manufacturing, Quality Assurance and Management etc. In 2005, Company installed SAP ERP systems connecting all offices of company. Capacity Expansions for TRB and CRB done by the company in 2006. Company also certified for ISO/TS 16949: 2002 by TUV-Sud.

Currently it is having three plants two in Gujarat and one in Maharashtra. The plant manufactures ball thrust, taper and cylindrical roller bearings. Company supplied its bearings to many top-tier companies like Tata Motors, Mahindra & Mahindra , Toyota Kirloskar etc. Over 70% of the bearings produced in the country are consumed by the auto industry. The company’s plants are situated at Lonavla in Maharashtra and Bharuch in Gujarat. It manufactures taper, cylindrical roller and ball thrust bearings with an installed capacity of over 3 million a year. Company is a leading supplier of cylindrical roller and taper roller bearings to Automobile sector in India. It is also the one of the big players in Tapered Roller Bearing segment in bearing industry.

Company with its strong technical collaboration with NSK Japan is well positioned in the competitive bearing industry. At CMP, stock is trading at 8.87 X multiple of its FY 2011 estimated earnings. We recommend investors to “BUY” “ABC Bearings Limited” with medium to long-term investment prospects.